Banking Sector Development and Economic Growth: Evidence from Nigeria
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Date
2017-12-31
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Journal ISSN
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Publisher
Ilorin Journal of Finance
Abstract
Studies have claimed that Nigerian banking sector is still underdeveloped and the sector has performed below expectation in its role of promoting economic growth of the country. This study therefore assessed the effect of banking sector devolpment on the Nigeria’s economic growth. Annual time series data from 1981 to 2015 were collected from CBN statsistical bulletin and World Bank database. Augmented Dickey Fuller (ADF) test was conducted to ascertain the order of integration of the series. Johansen co-integration test was performed and ECM approach was used to estimate the model. The study concludes that the banking sector development have both long and short run effect on the Nigerian economic growth. It is therefore recommended that banks in Nigeria should improve their administration of credit to private sector to ensure that the funds are properly channeled to productive ventures…
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Keywords
banking sector, development, economic growth Nigeria
Citation
Jimoh, et al.